Error and omissions insurance is a form of liability insurance, generally termed as E&O insurance covers breach of duty and protects any organisation/ institution / establishment against lawsuits and claims made by the clients against a professional who has provided advice or services to that client. E&O insurance covers the organisation and their employees against claims of negligent actions, breach of duty or any error or omission in rendering professional services.
This policy is meant to pay for defence expenses and damages which the insured is legally bound to pay resulting from any judgment or award by competent authority.
Error and Omission Insurance in medical fraternity:
Medical profession is exposed to various risks resulting in legal and financial liabilities.The Error and Omission Insurance policy will indemnify the Insured in respect of any act committed by the professionals or qualified assistants named in the proposal engaged by the medical establishment which gives rise to any third party legal liability.
The legal liabilities arise out of errors & omissions like misdiagnosis, negligence, errors in procedures related to surgery, an inadequate or incorrect course of treatment or medication, error in extending advice to patients etc.